CCA 200807014: Business ceased to be a railroad employer when operations ended

Number

200807014

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

November 2, 2007

Publicly released

February 15, 2008

Source

View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2008, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

View official IRS release (PDF)

Plain-English summary

The Railroad Retirement Board advised that a business had ceased to be an employer under railroad retirement and unemployment laws. After reviewing that opinion, IRS counsel also concluded that the business ceased to be an employer under the Railroad Retirement Tax Act. The effective date was redacted, but the memorandum says it was when the business ended operations and last paid employees. Its assets and liabilities had been transferred to its parent company.

Ruling snapshot

Question: When did the business cease to be an employer under the Railroad Retirement Tax Act?
Outcome: Advice that employer status ended when operations and employee compensation ended.
Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200807014
Release Date: 2/15/2008
CC:TEGE:EOEG:ET1
POSTN-139666-07

UILC: 3231.01-00

date: November 02, 2007
to: Director, Submission Processing
Cincinnati, OH
Attn: Entity Unit

from: Office of Division Counsel/Associate Chief Counsel Tax Exempt & Government Entities

subject: Railroad Retirement Tax Act Status

In accordance with the coordination procedure established between the Service and the Railroad Retirement Board (RRB), the RRB has provided us with its opinion dated ------- ----------------------, that the following business ceased to be an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act:

------------------------------------------------------------
-----------------------------------------------------------
----------------------------------------------------------------------------
-----------------------------------------------------------------

We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that ------------------------------------------------------------------ ceased to be an employer under the Railroad Retirement Tax Act on ------------------------- -------, the date on which it ceased operations and last compensated employees.
According to the RRB opinion, all of its assets and liabilities were transferred to its parent corporation -----------------.

_____
Janine Cook
cc:

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